Trump EPA Nominee a Boon for Energy Stocks Says Voya Strategist

Donald Trump's election has ushered in a "new world order" for American industry and especially energy suppliers. As a result, investors need to prepare for the growth and reflation trade, said Doug Cote, chief market strategist at Voya Investment Management (VOYA). Cote says he expects a resurgence of business investment in manufacturing and energy abetted by cuts in regulation and higher commodity prices. Along those lines, he says President-Elect Donald Trump's nominee to head the Environmental Protection Agency Scott Pruitt will be a boon for energy stocks due to his "pro-growth economic approach to environmental regulation." Of course there are risks in this new Trumpian world order, including policy execution risk, a global trade war and European Union instability. Rising rates, however, are not one of the most significant risks in Cote's view. In order to take advantage of this new environment, Cote recommends overweighting small and mid-cap stocks.